URBANA, Ill., Oct. 21, 2008 (GLOBE NEWSWIRE) -- First Busey Corporation's (Nasdaq:BUSE) consolidated net income for the quarter ended September 30, 2008 was $8.8 million, or $0.25 per fully-diluted share, compared to $11.5 million, or $0.36 per fully-diluted share, for the same period in 2007. Year-to-date consolidated net income was $23.4 million, or $0.65 per fully-diluted share, compared to $27.1 million, or $1.09 per fully-diluted share, in the same period of 2007. While many companies in our industry are experiencing losses and shrinking, we are pleased to show growth in our balance sheet and profitability, despite our provision related credit costs, which totaled $22.5 million year-to-date and $8.0 million for the third quarter.
As we reflect upon 2008 and look forward into 2009, our most significant goals are as follows:
* Maintaining the Busey Promise. We will maintain our promise to the
customer to provide the knowledge and convenience to fulfill their
financial needs. Whether it be deposit accounts and retirement
planning, or commercial lines of credit, cash management products
and retirement plan administration, we promise to meet our
customers' financial needs.
* Building our Capital Position. First Busey and its subsidiary banks
are well-capitalized. However, given our growth opportunities and
the difficult credit market, we believe that it is prudent for us
to raise additional capital. Tough economic times present us with
both challenges and opportunities. Additional capital will allow us
to take advantage of organic and external growth opportunities.
While we had planned to offer $30.0 million of Trust Preferred
Securities, we do not plan to move forward with the public offering
until we determine to what extent we will participate in the U.S.
Treasury's Capital Purchase Program.
* Credit Resolutions. Our organization has devoted significant time
and resources toward resolving credit issues. We will continue with
the same level of determination until we have put these significant
credit issues behind us and anticipate devoting significant
resources to credit issues beyond 2008.
* Non-interest Revenue Growth. A significant component of our value
resides in our non-interest bearing revenue channels, primarily
Busey Wealth Management and FirsTech. Growth in the non-interest
revenue channels will benefit our customers and our Company through
increased access to products and earnings diversification.
SELECTED FINANCIAL HIGHLIGHTS
-----------------------------
(dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
-------------------------------- ---------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2008 2008 2007 2008 2007
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EARNINGS & PER
SHARE DATA
Net income $ 8,817 $ 4,591 $ 11,510 $ 23,412 $ 27,110
Revenue(3) 47,311 45,481 40,959 137,766 93,282
Fully-diluted
earnings per
share 0.25 0.13 0.36 0.65 1.09
Cash dividends
paid per
share 0.20 0.20 0.18 0.60 0.59
Net income
(loss) by
operating
segment(4)
Busey Bank $ 8,064 $ 6,395 $ 11,240 $ 26,061 $ 27,258
Busey Bank,
N.A (1,393) (2,002) 366 (4,442) 1,008
Busey Wealth
Management 766 871 575 2,083 1,739
FirsTech 705 703 306 2,037 306
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AVERAGE
BALANCES
Assets $4,301,126 $4,235,000 $3,639,161 $4,243,769 $2,869,749
Earning assets 3,804,205 3,733,761 3,304,265 2,631,312 3,743,959
Deposits 3,312,634 3,200,098 2,909,176 3,247,767 2,299,752
Interest-
bearing
liabilities 3,375,151 3,289,370 2,873,767 3,306,097 2,312,805
Stockholders'
equity 513,385 517,936 370,902 517,594 258,346
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PERFORMANCE
RATIOS
Return on
average
assets(1) 0.81% 0.43% 1.25% 0.74% 1.26%
Return on
average
equity(1) 6.81% 3.56% 12.31% 6.04% 14.03%
Net interest
margin(1) 3.34% 3.46% 3.67% 3.43% 3.58%
Efficiency
ratio(2) 54.83% 56.46% 56.70% 56.77% 55.10%
Non-interest
revenue as a
% of total
revenues(3) 33.54% 30.68% 26.73% 31.60% 26.10%
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ASSET QUALITY
Gross loans $3,229,394 $3,166,705 $3,040,881
Allowance for
loan losses 48,674 48,579 38,198
Net
charge-offs 7,905 6,645 630 16,336 1,063
Allowance for
loan losses
to loans 1.51% 1.53% 1.26%
Allowance as a
percentage
of non-
performing
loans 68.37% 82.84% 159.74%
Non-performing
loans
Non-accrual
loans 59,347 53,155 17,847
Loans 90+
days past
due 11,847 5,486 6,065
Geographically
Downstate
Illinois/
Indiana 16,041 18,639 21,924
Florida 55,153 40,002 1,988
Other non-
performing
assets 4,846 3,095 2,138
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(1) Quarterly ratios annualized
(2) Net of security gains and amortization.
(3) Net of interest expense, excludes security gains.
(4) September 30, 2007 reflects two months of results following the
merger with Main Street. Main Street Bank & Trust 2007 results
have been combined with Busey Bank. Busey Wealth Management
results exclude the results of Main Street Bank & Trust's trust
operations for the 2007 periods presented.
Special Note Concerning Forward-Looking Statements
This document may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should" or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local and national economy; (ii) the economic impact of any future terrorist threats or attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business; (iv) changes in interest rates and prepayment rates of the Company's assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the loss of key executives or employees; (viii) changes in consumer spending; (ix) unexpected results of acquisitions; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except per share data)
Sept. 30, June 30, Dec. 31, Sept. 30,
2008 2008 2007 2007
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Assets
Cash and due from
banks $ 93,443 $ 124,639 $ 125,228 $ 108,037
Federal funds sold -- -- 459 43,000
Investment securities 619,984 580,891 610,422 697,802
Net loans 3,180,720 3,118,126 3,010,665 3,002,683
Premises and equipment 81,979 82,198 80,400 70,128
Goodwill and other
intangibles 277,980 278,835 280,487 274,688
Other assets 85,113 80,742 85,264 91,812
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Total assets $4,339,219 $4,265,431 $4,192,925 $4,288,150
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Liabilities &
Stockholders' Equity
Non-interest bearing
deposits $ 359,028 $ 376,452 $ 389,672 $ 454,875
Interest-bearing
deposits 2,939,343 2,797,511 2,817,526 2,912,933
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Total deposits $3,298,371 $3,173,963 $3,207,198 $3,367,808
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Federal funds purchased
& securities sold
under agreements to
repurchase 227,386 217,734 203,119 137,463
Short-term borrowings 72,000 117,000 10,523 21,023
Long-term debt 134,910 151,910 150,910 135,825
Junior subordinated
debt owed to
unconsolidated trusts 55,000 55,000 55,000 55,000
Other liabilities 37,692 36,301 36,478 32,757
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Total liabilities $3,825,359 $3,751,908 $3,663,228 $3,749,876
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Total stockholders'
equity $ 513,860 $ 513,523 $ 529,697 $ 538,274
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Total liabilities &
stockholders equity $4,339,219 $4,265,431 $4,192,925 $4,288,150
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Per Share Data
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Book value per share $ 14.36 $ 14.35 $ 14.58 $ 14.71
Tangible book value
per share $ 6.59 $ 6.56 $ 6.86 $ 7.20
Ending number of
shares outstanding 35,788 35,787 36,332 36,585
Condensed Consolidated Statements of Income
(Unaudited, in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
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2008 2007 2008 2007
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Interest and fees on loans $ 48,771 $ 51,190 $149,033 $122,937
Interest on investment
securities 6,058 6,909 18,938 14,490
Other interest income 65 703 173 990
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Total interest income $ 54,894 $ 58,802 $168,144 $138,417
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Interest on deposits 19,680 24,521 61,701 58,028
Interest on short-term
borrowings 1,433 1,508 4,948 3,018
Interest on long-term debt 1,494 1,748 4,615 5,420
Junior subordinated debt owed
to unconsolidated trusts 846 1,013 2,651 3,015
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Total interest expense $ 23,453 $ 28,790 $ 73,915 $ 69,481
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Net interest income $ 31,441 $ 30,012 $ 94,229 $ 68,936
Provision for loan losses 8,000 1,795 22,450 2,775
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Net interest income after
provision for loan losses $ 23,441 $ 28,217 $ 71,779 $ 66,161
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Fees for customer services 4,405 3,433 12,250 9,022
Trust fees 3,342 2,691 10,113 6,090
Remittance processing 3,114 1,746 9,089 1,746
Commissions and brokers' fees 792 707 2,180 1,949
Gain on sales of loans 1,082 994 3,448 2,414
Net security gains 7 2,065 509 2,995
Other 3,135 1,376 6,457 3,125
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Total non-interest income $ 15,877 $ 13,012 $ 44,046 $ 27,341
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Salaries and wages 11,534 11,698 34,897 25,397
Employee benefits 2,708 2,058 8,430 4,995
Net occupancy expense 2,326 1,988 7,115 4,814
Furniture and equipment expense 1,989 1,370 6,256 3,049
Data processing expense 1,570 1,715 4,886 2,731
Amortization expense 1,129 876 3,388 1,385
Other operating expenses 6,123 4,690 17,652 11,244
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Total non-interest expense $ 27,379 $ 24,395 $ 82,624 $ 53,615
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Income before income taxes $ 11,939 $ 16,834 $ 33,201 $ 39,887
Income taxes 3,122 5,324 9,789 12,777
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Net income $ 8,817 $ 11,510 $ 23,412 $ 27,110
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Per Share Data
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Basic earnings per share $ 0.25 $ 0.37 $ 0.65 $ 1.09
Fully-diluted earnings per
share $ 0.25 $ 0.36 $ 0.65 $ 1.09
Diluted average shares
outstanding 35,856 31,655 35,972 24,939
Corporate Profile
First Busey Corporation is a $4.3 billion financial holding company headquartered in Urbana, Illinois. First Busey Corporation has two wholly-owned banks with locations in three states. Busey Bank is headquartered in Champaign, Illinois and has forty-five banking centers serving downstate Illinois. Busey Bank has a banking center in Indianapolis, Indiana, and a loan production office in Fort Myers, Florida. As of September 30, 2008, Busey Bank had total assets of $3.9 billion. Busey Bank, N.A. is headquartered in Fort Myers, Florida, with eight banking centers serving southwest Florida. Busey Bank, N.A. had total assets of $449.8 million as of September 30, 2008.
Busey Wealth Management is a wholly-owned subsidiary of First Busey Corporation. Through Busey Trust Company, Busey Wealth Management delivers trust, asset management, retail brokerage and insurance products and services. As of September 30, 2008, Busey Wealth Management had approximately $3.8 billion in assets under care.
First Busey Corporation owns a retail payment processing subsidiary, FirsTech, Inc., which processes over 27 million transactions per year through online bill payments, lockbox processing and walk-in payments through its 4,000 agent locations in 36 states.
Busey provides electronic delivery of financial services through our website, www.busey.com.
* Merging of our Banking Subsidiaries. We are currently working to consolidate our two banking subsidiaries. Our banking operations are highly centralized with effectively the same management team overseeing both banks. It makes sense for us from a strategy standpoint and a cost standpoint to merge our banks into one bank. The resulting bank will be larger and, we believe, more efficient due to the lack of duplicate costs and processes. Additionally, our goal is to create a brand and a culture in our Florida franchise that is consistent with our franchise in downstate Illinois.
Our management team is working to meet these significant goals throughout the remainder of 2008 and into 2009. In addition to these goals, other challenges and opportunities will arise and we are ready to take advantage of them. Our strong customer base, great team of associates and solid balance sheet provides us with the base to succeed. As always, your input and questions are welcome. Thank you for your continued support.